# Kontoor Brands, Inc.: Form 10-Q for the period ended Sep 27, 2025

- Company: [Kontoor Brands, Inc.](/companies/ktb.md) (CIK 1760965)
- Form: 10-Q
- Filed: 2025-11-03
- Accepted by EDGAR: Nov 3, 2025, 16:43 ET
- Period: 2025-09-27
- Accession: 0001760965-25-000103
- Inline XBRL: yes
- Main document: https://www.sec.gov/Archives/edgar/data/1760965/000176096525000103/ktb-20250927.htm
- All documents and exhibits: https://www.sec.gov/Archives/edgar/data/1760965/000176096525000103/

## Figures reported in this filing

Standardized XBRL line items for the period ended 2025-09-27.

| Line item | Period | Value | XBRL concept |
| --- | --- | ---: | --- |
| Revenue | 3 months, 2025-06-29 to 2025-09-27 | $853.2m | us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax |
| Revenue | 9 months, 2024-12-29 to 2025-09-27 | $2.13bn | us-gaap:RevenueFromContractWithCustomerExcludingAssessedTax |
| Cost of revenue | 3 months, 2025-06-29 to 2025-09-27 | $501.1m | us-gaap:CostOfGoodsAndServicesSold |
| Cost of revenue | 9 months, 2024-12-29 to 2025-09-27 | $1.18bn | us-gaap:CostOfGoodsAndServicesSold |
| Selling, general and administrative | 3 months, 2025-06-29 to 2025-09-27 | $288.3m | us-gaap:SellingGeneralAndAdministrativeExpense |
| Selling, general and administrative | 9 months, 2024-12-29 to 2025-09-27 | $736.9m | us-gaap:SellingGeneralAndAdministrativeExpense |
| Operating income | 3 months, 2025-06-29 to 2025-09-27 | $63.9m | us-gaap:OperatingIncomeLoss |
| Operating income | 9 months, 2024-12-29 to 2025-09-27 | $215.7m | us-gaap:OperatingIncomeLoss |
| Interest expense | 3 months, 2025-06-29 to 2025-09-27 | $19.0m | us-gaap:InterestExpenseNonoperating |
| Interest expense | 9 months, 2024-12-29 to 2025-09-27 | $42.3m | us-gaap:InterestExpenseNonoperating |
| Income tax | 3 months, 2025-06-29 to 2025-09-27 | $6.0m | us-gaap:IncomeTaxExpenseBenefit |
| Income tax | 9 months, 2024-12-29 to 2025-09-27 | $43.2m | us-gaap:IncomeTaxExpenseBenefit |
| Net income | 3 months, 2025-06-29 to 2025-09-27 | $36.9m | us-gaap:NetIncomeLoss |
| Net income | 9 months, 2024-12-29 to 2025-09-27 | $153.7m | us-gaap:NetIncomeLoss |
| Diluted EPS | 3 months, 2025-06-29 to 2025-09-27 | $0.66 | us-gaap:EarningsPerShareDiluted |
| Diluted EPS | 9 months, 2024-12-29 to 2025-09-27 | $2.74 | us-gaap:EarningsPerShareDiluted |
| Basic EPS | 3 months, 2025-06-29 to 2025-09-27 | $0.66 | us-gaap:EarningsPerShareBasic |
| Basic EPS | 9 months, 2024-12-29 to 2025-09-27 | $2.77 | us-gaap:EarningsPerShareBasic |
| Diluted shares (weighted) | 3 months, 2025-06-29 to 2025-09-27 | 56,069,000 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Diluted shares (weighted) | 9 months, 2024-12-29 to 2025-09-27 | 56,034,000 shares | us-gaap:WeightedAverageNumberOfDilutedSharesOutstanding |
| Operating cash flow | 9 months, 2024-12-29 to 2025-09-27 | $167.5m | us-gaap:NetCashProvidedByUsedInOperatingActivities |
| Capital expenditure | 9 months, 2024-12-29 to 2025-09-27 | $14.5m | us-gaap:PaymentsToAcquirePropertyPlantAndEquipment |
| Dividends paid | 9 months, 2024-12-29 to 2025-09-27 | $86.6m | us-gaap:PaymentsOfDividendsCommonStock |
| Share repurchases | 9 months, 2024-12-29 to 2025-09-27 | $0 | us-gaap:PaymentsForRepurchaseOfCommonStock |
| Cash and equivalents | at 2025-09-27 | $82.4m | us-gaap:CashAndCashEquivalentsAtCarryingValue |
| Current assets | at 2025-09-27 | $1.34bn | us-gaap:AssetsCurrent |
| Total assets | at 2025-09-27 | $2.86bn | us-gaap:Assets |
| Current liabilities | at 2025-09-27 | $702.3m | us-gaap:LiabilitiesCurrent |
| Total liabilities | at 2025-09-27 | $2.33bn | us-gaap:Liabilities |
| Long-term debt | at 2025-09-27 | $1.34bn | us-gaap:LongTermDebtNoncurrent |
| Current portion of debt | at 2025-09-27 | $0 | us-gaap:LongTermDebtCurrent |
| Shareholders' equity | at 2025-09-27 | $529.6m | us-gaap:StockholdersEquity |

## Management's discussion and analysis

As filed, 51,473 characters.

*Management's Discussion and Analysis of Financial Condition and Results of Operations is intended to provide readers of our financial statements with a narrative from management's perspective on our financial condition, results of operations and liquidity as well as certain other factors that may affect our future results. This section should be read in conjunction with the Consolidated Financial Statements and related Notes included in this Quarterly Report on Form 10-Q.*

*The following discussion and analysis includes forward-looking statements. These forward-looking statements are subject to risks, uncertainties and other factors that could cause our actual results to differ materially from those expressed or implied by the forward-looking statements. Factors that could cause or contribute to these differences include, but are not limited to, those discussed in “Cautionary Statement On Forward-Looking Statements” included later in Part I, Item 2 of this Quarterly Report on Form 10-Q, in Part II, Item 1A "Risk Factors" in this Quarterly Report on Form 10-Q and in Part I, Item 1A "Risk Factors" in our 2024 Annual Report on Form 10-K.*

### Description of Business

Kontoor Brands, Inc. ("Kontoor," the "Company," "we," "us" or "our") is a global lifestyle apparel company headquartered in the United States ("U.S."). The Company designs, manufactures, procures, sells and licenses apparel, footwear and accessories, primarily under the brand names *Wrangler®, Lee®* and *Helly Hansen®.* The Company's products are sold in the U.S. through mass merchants, outdoor and sporting goods stores, specialty stores, department stores, company-operated stores and online, including digital marketplaces. The Company's products are also sold internationally, primarily in the Europe, Middle East and Africa ("EMEA"), Asia-Pacific ("APAC") and Non-U.S. Americas regions, through department stores, outdoor and sporting goods stores, specialty stores, company-operated stores, concession retail stores, independently-operated partnership stores and online, including digital marketplaces.

### Acquisition of Helly Hansen

On May 31, 2025, we completed the acquisition of Helly Hansen, and the results of operations have been included in the Company's consolidated financial statements since that date. Refer to Note 2 to the Company's financial statements in this Form 10-Q for additional information related to the acquisition of Helly Hansen.

### Fiscal Year and Basis of Presentation

The Company operates and reports using a 52/53-week fiscal year ending on the Saturday closest to December 31 of each year. Accordingly, this Form 10-Q presents the third quarter of the Company's fiscal year ending January 3, 2026 ("fiscal 2025"), which is a 53-week fiscal year. For presentation purposes herein, all references to periods ended September 2025, December 2024 and September 2024 correspond to the fiscal periods ended September 27, 2025, December 28, 2024, and September 28, 2024, respectively.

References to fiscal 2025 foreign currency amounts herein reflect the impact of changes in foreign exchange rates from the prior year comparable period when translating foreign currencies into U.S. dollars. The Company's most significant foreign currency translation exposure is typically driven by business conducted in euro-based countries, the Norwegian krone, the Chinese yuan, the Canadian dollar and the Mexican peso. However, the Company conducts business in other developed and emerging markets around the world with exposure to other foreign currencies.

Amounts herein may not recalculate due to the use of unrounded numbers.

### Macroeconomic Environment and Other Recent Developments

Global macroeconomic conditions that continued to impact the Company during the third quarter of 2025 included inconsistent consumer demand despite recent declines in interest rates, fluctuating foreign currency exchange rates, moderating inflation and global supply chain issues.

During 2025, the U.S. government enacted significant changes to its tariff regime which increased rates on virtually all imports, many of which have gone into effect or will go into effect during the fourth quarter of 2025. The ongoing impact of increased tariff rates and uncertainty regarding the outcomes of trade negotiations is contributing to macroeconomic volatility. Additionally, the increased tariff rates impacted gross margins during the third quarter of 2025 and are expected to continue to impact future periods. These factors continued to contribute to uncertain global economic conditions and consumer spending patterns, which impacted retailers' and the Company's operations.

Inflationary and interest rate pressures have moderated in recent quarters. These pressures have continued to impact us, along with recent increases in product costs and tariffs, compared to the third quarter of 2024. Retailers continued to conservatively manage inventory levels as a result of this uncertain macroeconomic environment. The Company has responded to ongoing macroeconomic conditions by controlling expenses, strategic pricing adjustments and investing in our brands and strategic priorities.

In connection with the recently enacted U.S. tariff regime discussed above, the Company continues to evaluate mitigating actions including the transfer of production within our global supply chain, transformation of our supply chain capabilities, pricing adjustments,

Kontoor Brands, Inc. Q3 FY25 Form 10-Q 26 supplier partnership initiatives and other proactive mitigating actions. While we anticipate continued uncertainty related to the macroeconomic environment during the remainder of 2025 and into 2026, including the potential impacts of further tariff increases, we believe we are appropriately positioned to successfully manage through operational challenges that may arise. We continue to closely monitor macroeconomic conditions, including consumer behavior and the impact of these factors on consumer demand.

### Business Overview

We are focused on driving brand growth and delivering long-term value to our stakeholders including our consumers, customers, shareholders, suppliers and communities around the world. Through our three global brands, we are focused on accelerating growth, expanding operating margin, increasing capital allocation optionality and establishing the Company as the employer of choice in the industry. Additionally, the integration of the recently completed acquisition of Helly Hansen is a strategic focus for the Company, with an emphasis on growth and operating margin expansion. The Company also continues to execute on Project Jeanius, a comprehensive end-to-end business transformation focused on simplifying processes, optimizing systems and enhancing our global operating model with the goal of creating significant investment capacity through gross and operating margin expansion.

Our capital allocation strategy allows us the option to (i) invest in our business, (ii) pay down debt, (iii) provide for a superior dividend payout, (iv) repurchase shares under our existing authorization and (v) act on strategic acquisition opportunities that may arise.

On February 18, 2025, the Company entered into a definitive agreement to acquire all of the issued and outstanding share capital of CTC Triangle B.V., a Netherlands private limited liability company, which is the parent of a group of companies that operates the *Helly Hansen®* and *Musto®* brands, collectively referred to as "Helly Hansen." During the first and second quarters of 2025, the Company entered into foreign currency exchange contracts totaling $1.3 billion Canadian dollars ("CAD") to hedge the purchase price of the acquisition.

The acquisition of Helly Hansen (the "Acquisition") was completed on May 31, 2025, with cash consideration paid of $1.3 billion CAD, equivalent to $957.5 million U.S. dollars. The purchase price was funded by indebtedness and cash on hand. During the three months ended September 2025, the Company recorded measurement period adjustments, primarily to working capital estimates, resulting in an increase to goodwill of $27.9 million. The final determination of the purchase price allocation will be completed as soon as practicable, and within the measurement period of up to one year from the Closing Date. During the third quarter of 2025, the Company incurred acquisition and integration-related costs of $12.0 million comprised primarily of professional and other fees. We expect to incur additional integration-related costs associated with the Acquisition in future periods.

During the third quarter of 2025, the Company closed a portion of our manufacturing facilities and incurred restructuring and transformation charges of $38.1 million primarily related to severance and employee-related benefits. A reduction in our manufacturing facilities and diversification in our sourcing footprint, which is part of our ongoing supply chain transformation, will help to promote flexibility, balance costs, improve speed of service and enhance our sourcing capabilities. We will continue to leverage our manufacturing expertise to maximize utilization and efficiency at our remaining manufacturing facilities.

Additionally, during the third quarter of 2025, the Company incurred restructuring and transformation charges of $7.6 million related to business optimization activities associated with the continued execution of Project Jeanius and $0.4 million related to streamlining and transferring select production within our internal manufacturing network. We anticipate continued transformation costs associated with Project Jeanius as we execute on this multi-year initiative.

27 Kontoor Brands, Inc. Q3 FY25 Form 10-Q

### THIRD QUARTER OF FISCAL 2025 SUMMARY

- The Helly Hansen acquisition was completed on May 31, 2025, and the results of operations have been included since that date. Helly Hansen operating results were driven by seasonality of the business. During the three months ended September 2025, the Company incurred $12.0 million of charges related to acquisition and integration-related activities.
- In the three months ended September 2025, the Company incurred $38.1 million of charges related to the closure of a portion of our manufacturing facilities, resulting in a 450 basis point decrease in gross margin for the period. Additionally, in the three months ended September 2025, the Company incurred $7.6 million of charges for business optimization activities which were recorded in selling, general and administrative expenses.
- **Net revenues** increased 27% to $853.2 million compared to the three months ended September 2024, and included $192.7 million attributable to Helly Hansen.
- **U.S. Wholesale revenues** increased 4% compared to the three months ended September 2024, and represented 59% of total revenues in the current period. Helly Hansen U.S. Wholesale revenues were $30.6 million.
- **International Wholesale revenues** increased 109% compared to the three months ended September 2024, and represented 29% of total revenues in the current period. Helly Hansen International Wholesale revenues were $129.1 million.
- **Direct-to-Consumer revenues** increased 53% compared to the three months ended September 2024, and represented 13% of total revenues in the current period. Helly Hansen Direct-to-Consumer revenues were $33.0 million.
- **Gross margin** decreased 340 basis points to 41.3% compared to the three months ended September 2024, driven by the charges incurred during the period as discussed above.
- **Selling, general and administrative expenses** as a percentage of net revenues increased to 33.8% compared to 30.0% for the three months ended September 2024, and included $73.8 million of operating expenses attributable to Helly Hansen and the charges incurred during the period as discussed above.
- **Operating income** decreased 35% to $63.9 million compared to the three months ended September 2024, and included $9.3 million of operating income attributable to Helly Hansen and the charges incurred during the period as discussed above.
- **Net income** decreased 48% to $36.9 million compared to the three months ended September 2024, and included $1.9 million of net income attributable to Helly Hansen and the charges incurred during the period as discussed above.
- **Diluted earnings per share** was $0.66 in the third quarter, compared to $1.26 in the same period last year, and included $0.03 of diluted earnings per share attributable to Helly Hansen.
- **Cash provided by operating activities** was $167.5 million as compared to $286.3 million in the same period last year.

### ANALYSIS OF RESULTS OF OPERATIONS

### Consolidated Statements of Operations

The following table presents components of the Company's statements of operations:

*(Dollars in thousands)*

|  | Three Months Ended September 2025 | 2024 | Nine Months Ended September 2025 | 2024 |
| --- | ---: | ---: | ---: | ---: |
| Net revenues | $853,215 | $670,194 | $2,134,375 | $1,908,294 |
| Gross margin (net revenues less cost of goods sold) | $352,161 | $299,510 | $952,634 | $856,014 |
| As a percentage of net revenues | 41.3% | 44.7% | 44.6% | 44.9% |
| Selling, general and administrative expenses | $288,309 | $201,189 | $736,946 | $598,020 |
| As a percentage of net revenues | 33.8% | 30.0% | 34.5% | 31.3% |
| Operating income | $63,852 | $98,321 | $215,688 | $257,994 |
| As a percentage of net revenues | 7.5% | 14.7% | 10.1% | 13.5% |

Kontoor Brands, Inc. Q3 FY25 Form 10-Q 28

Additionally, the following table presents a summary of the changes in net revenues for the three and nine months ended September 2025 as compared to September 2024:

*(In millions)*

|  | Three Months Ended September | Nine Months Ended September |
| --- | ---: | ---: |
| Net revenues — 2024 | $670.2 | $1,908.3 |
| Organic (1) | (14.7) | 3.7 |
| Helly Hansen acquisition | 192.7 | 221.9 |
| Impact of foreign currency | 5.0 | 0.5 |
| Net revenues — 2025 | $853.2 | $2,134.4 |

(1) Organic refers to revenues generated excluding the contributions from the Helly Hansen acquisition.

#### Three Months Ended September 2025 Compared to the Three Months Ended September 2024

**Net revenues** increased 27%, primarily attributable to Helly Hansen. The increase in net revenues was driven by a 109% increase in International Wholesale revenues, primarily attributable to Helly Hansen. Global Direct-to-Consumer revenues increased 53%, attributable to Helly Hansen along with higher e-commerce and retail store sales for the *Wrangler®* and *Lee®* brands. U.S. Wholesale revenues grew 4% attributable to Helly Hansen and growth in our Wrangler wholesale business, driven by category growth in Western, partially offset by a decrease in our Lee wholesale business and a shift in the timing of shipments.

Additional details on changes in net revenues for the three months ended September 2025 as compared to September 2024 are provided in the section titled “Information by Business Segment.”

**Gross margin** decreased 340 basis points, primarily related to the 450 basis point impact of restructuring and transformation costs from the closure of a portion of our manufacturing facilities, 180 basis points due to tariffs, 80 basis points due to higher product costs, and 60 basis points attributable to Helly Hansen. These decreases were partially offset by 310 basis points from favorable product and channel mix and pricing initiatives and 90 basis points due to the benefits of Project Jeanius.

**Selling, general and administrative expenses** increased $87.1 million, from 30.0% to 33.8% of net revenues, driven by a 320 basis point impact from Helly Hansen operating expenses of $73.8 million. In addition, expenses increased related to acquisition and integration-related charges of $12.0 million, higher restructuring and transformation charges and incentive compensation, which were partially offset by declines in discretionary spending and benefits of Project Jeanius.

#### Nine Months Ended September 2025 Compared to the Nine Months Ended September 2024

**Net revenues** increased 12%, primarily attributable to Helly Hansen. The increase in net revenues was driven by a 42% increase in International Wholesale revenues, primarily attributable to Helly Hansen. Global Direct-to-Consumer revenues increased 26%, attributable to Helly Hansen and higher e-commerce and retail store sales for Wrangler and Lee. U.S. Wholesale revenues increased 3% attributable to Helly Hansen and growth in our Wrangler wholesale business, with category growth in Western and Workwear, which was partially offset by a decrease in our Lee wholesale business.

Additional details on changes in net revenues for the nine months ended September 2025 as compared to September 2024 are provided in the section titled “Information by Business Segment.”

**Gross margin** decreased 30 basis points, primarily related to the 180 basis point impact of restructuring and transformation costs from the closure of a portion of our manufacturing facilities and 70 basis points due to tariffs. These decreases were partially offset by 140 basis points from favorable product and channel mix and pricing initiatives and 70 basis points due to the benefits of Project Jeanius.

**Selling, general and administrative expenses** increased $138.9 million, from 31.3% to 34.5% of net revenues, driven by a 220 basis point impact from Helly Hansen operating expenses of $94.2 million. In addition, expenses increased related to $36.3 million of acquisition and integration-related costs, a $10.7 million increase in restructuring and transformation charges and a $11.8 million increase in incentive compensation, which were partially offset by declines in discretionary spending and benefits of Project Jeanius.

**Other income (expense), net** reflected a favorable change of $24.1 million, driven entirely by gains related to foreign currency exchange contracts to hedge the purchase price of the Acquisition.

29 Kontoor Brands, Inc. Q3 FY25 Form 10-Q

The effective **income tax** rate for the nine months ended September 2025 was 22.1% compared to 19.5% in the 2024 period. The nine months ended September 2025 included a net discrete tax benefit primarily related to stock-based compensation, one-time benefits related to the release of tax reserves and the remeasurement of deferred tax assets, partially offset by an increase in valuation allowances in a foreign jurisdiction, the net impact of which decreased the effective income tax rate by 0.5%. The nine months ended September 2024 included a net discrete tax benefit primarily related to stock-based compensation which decreased the effective income tax rate by 0.7%. The effective tax rate without discrete items for the nine months ended September 2025 was 22.6% compared to 20.2% in the 2024 period. The increase was primarily due to changes in our jurisdictional mix of earnings and estimated non-deductible transaction costs incurred in conjunction with the Acquisition.

The One Big Beautiful Bill Act (“OBBBA”) was signed into law by President Trump on July 4, 2025. The OBBBA includes significant provisions, such as the permanent extension of certain expiring provisions of the Tax Cuts and Jobs Act, modifications to the international tax framework including changes to global intangible low-tax income (“GILTI”), foreign derived intangible income (“FDII”) and the base erosion and anti-abuse tax (“BEAT”). The legislation also includes the restoration of favorable tax treatment for certain business provisions such as bonus depreciation and Section 174 expensing. The legislation has multiple effective dates, with certain provisions effective in 2025 and others implemented through 2027. The Company is currently evaluating the impact of the OBBBA on our consolidated financial statements.

### Information by Business Segment

The Company's three reportable segments are *Wrangler®, Lee®* and *Helly Hansen®.* Refer to Note 4 to the Company's financial statements in this Form 10-Q for additional information.

The following tables present a summary of the changes in segment revenues and segment profit for the three and nine months ended September 2025 as compared to the three and nine months ended September 2024:

### Segment Revenues:

*(In millions)*

|  | Three Months Ended September Wrangler | Lee | Helly Hansen | Total |
| --- | ---: | ---: | ---: | ---: |
| Segment revenues — 2024 | $464.1 | $202.3 | $— | $666.5 |
| Operations | 5.0 | (18.5) | 185.9 | 172.4 |
| Impact of foreign currency | 2.1 | 2.9 | — | 5.0 |
| Segment revenues — 2025 | $471.2 | $186.7 | $185.9 | $843.9 |
|  | **Nine Months Ended September** |  |  |  |
| (In millions) | **Wrangler** | **Lee** | **Helly Hansen** | **Total** |
| Segment revenues — 2024 | $1,302.8 | $597.1 | $— | $1,899.9 |
| Operations | 49.5 | (44.8) | 212.6 | 217.2 |
| Impact of foreign currency | 0.5 | — | — | 0.5 |
| Segment revenues — 2025 | $1,352.8 | $552.3 | $212.6 | $2,117.6 |

Kontoor Brands, Inc. Q3 FY25 Form 10-Q 30

### Segment Profit (Loss):

*(In millions)*

|  | Three Months Ended September Wrangler | Lee | Helly Hansen |
| --- | ---: | ---: | ---: |
| Segment profit — 2024 | $97.8 | $23.4 | $— |
| Operations | 18.3 | (7.2) | 8.0 |
| Impact of foreign currency | 0.3 | 0.5 | — |
| Segment profit — 2025 | $116.4 | $16.7 | $8.0 |
|  | **Nine Months Ended September** |  |  |
| (In millions) | **Wrangler** | **Lee** | **Helly Hansen** |
| Segment profit — 2024 | $260.8 | $71.8 | $— |
| Operations | 51.0 | (10.7) | 3.2 |
| Impact of foreign currency | (0.4) | 0.5 | — |
| Segment profit — 2025 | $311.4 | $61.6 | $3.2 |

The following sections discuss the changes in segment revenues and segment profit.

### Wrangler

*(Dollars in millions)*

|  | Three Months Ended September 2025 | 2024 | Percent Change | Nine Months Ended September 2025 | 2024 | Percent Change |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Segment revenues | $471.2 | $464.1 | 1.5% | $1,352.8 | $1,302.8 | 3.8% |
| Segment profit | $116.4 | $97.8 | 19.1% | $311.4 | $260.8 | 19.4% |
| Operating margin | 24.7% | 21.1% |  | 23.0% | 20.0% |  |

#### Three Months Ended September 2025 Compared to the Three Months Ended September 2024

Global **revenues** for the *Wrangler®* brand increased 2%, due to growth in the U.S. Wholesale, International Wholesale and Direct-to-Consumer channels.

- Revenues in the Americas region increased 1%, primarily due to growth in our U.S. direct-to-consumer business, which was driven by an increase in e-commerce sales. U.S. Wholesale growth was partially offset by a decrease in our digital wholesale business and a shift in the timing of shipments.
- Revenues in the EMEA region increased 12%, driven by a 7% favorable impact from foreign currency and growth in both our wholesale and digital wholesale businesses.
- Revenues in the APAC region decreased slightly.

**Operating margin** increased to 24.7%, compared to 21.1% for the 2024 period. Gross margin increased primarily due to favorable product and channel mix and pricing initiatives, partially offset by higher tariffs and product costs. Other operating costs decreased due to lower distribution expenses and benefits from Project Jeanius.

31 Kontoor Brands, Inc. Q3 FY25 Form 10-Q

#### Nine Months Ended September 2025 Compared to the Nine Months Ended September 2024

Global **revenues** for the *Wrangler®* brand increased 4%, due to growth in the U.S. Wholesale and Direct-to-Consumer channels.

- Revenues in the Americas region increased 4%, primarily due to growth in the U.S. Wholesale and U.S. direct-to-consumer business. Growth in wholesale was driven by category growth and increases in our U.S. licensing and digital wholesale businesses. Growth in our U.S. direct-to-consumer business was primarily driven by higher e-commerce sales.
- Revenues in the EMEA region increased 6%, primarily due to a 3% favorable impact from foreign currency and growth in our wholesale and direct-to-consumer businesses. Growth in wholesale was driven by an increase in our digital wholesale business.
- Revenues in the APAC region decreased slightly.

**Operating margin** increased to 23.0%, compared to 20.0% for the 2024 period. Gross margin increased primarily due to favorable product and channel mix, pricing initiatives and lower product costs, partially offset by increased tariffs. Other operating costs decreased due to benefits from Project Jeanius and a decrease in restructuring and transformation charges which were partially offset by higher investments in demand creation and information technology.

### Lee

*(Dollars in millions)*

|  | Three Months Ended September 2025 | 2024 | Percent Change | Nine Months Ended September 2025 | 2024 | Percent Change |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Segment revenues | $186.7 | $202.3 | (7.7)% | $552.3 | $597.1 | (7.5)% |
| Segment profit | $16.7 | $23.4 | (28.4)% | $61.6 | $71.8 | (14.3)% |
| Operating margin | 8.9% | 11.5% |  | 11.1% | 12.0% |  |

#### Three Months Ended September 2025 Compared to the Three Months Ended September 2024

Global **revenues** for the *Lee®* brand decreased 8%, due to declines in the U.S. Wholesale and International Wholesale channels, partially offset by growth in the Direct-to-Consumer channel.

- Revenues in the Americas region decreased 7%, driven by a decline in the U.S. Wholesale channel, partially offset by growth in our U.S. direct-to-consumer business. The decrease in the U.S. Wholesale channel was driven by a decrease in wholesale shipments. Growth in our U.S. direct-to-consumer business was due to higher e-commerce sales.
- Revenues in the EMEA region increased 8%, driven by a 7% favorable impact from foreign currency, along with growth in our digital wholesale and direct-to-consumer businesses. Growth in our EMEA direct-to-consumer business was driven by higher retail store sales.
- Revenues in the APAC region decreased 24%, due to a decrease in wholesale, driven by proactive inventory management actions with retailers, and a decline in e-commerce sales in China.

**Operating margin** decreased to 8.9%, compared to 11.5% for the 2024 period. Gross margin decreased primarily due to higher tariffs and product costs and unfavorable product and channel mix which were partially offset by pricing initiatives. Other operating costs increased primarily due to deleverage of fixed expenses on lower revenues, partially offset by lower distribution costs and benefits from Project Jeanius.

#### Nine Months Ended September 2025 Compared to the Nine Months Ended September 2024

Global **revenues** for the *Lee®* brand decreased 8%, due to declines in the U.S. Wholesale and International Wholesale channels, partially offset by growth in the Direct-to-Consumer channel.

- Revenues in the Americas region decreased 8%, driven by a decline in the U.S. Wholesale channel, partially offset by growth in our U.S. direct-to-consumer business. The decrease in the U.S. Wholesale channel was due to lower wholesale shipments and a decline in our digital wholesale business. Growth in our U.S. direct-to-consumer business was due to higher e-commerce sales which were partially offset by lower retail store sales.
- Revenues in the EMEA region decreased 1%, driven by a decline in our wholesale business partially offset by growth in our direct-to-consumer business due to higher retail store and e-commerce sales.
- Revenues in the APAC region decreased 12%, due to a decrease in wholesale, driven by proactive inventory management actions with retailers, and a decline in e-commerce sales in China.

**Operating margin** decreased to 11.1% compared to 12.0% for the 2024 period. Gross margin decreased primarily due to unfavorable product and channel mix and higher tariffs and product costs, partially offset by pricing initiatives. Other operating costs

Kontoor Brands, Inc. Q3 FY25 Form 10-Q 32 increased primarily due to deleverage of fixed expenses on lower revenues, partially offset by lower distribution costs and benefits from Project Jeanius.

### Helly Hansen

*(Dollars in millions)*

|  | Three Months Ended September 2025 | 2024 | Percent Change | Nine Months Ended September 2025 | 2024 | Percent Change |
| --- | ---: | ---: | --- | ---: | ---: | --- |
| Segment revenues | $185.9 | $— | \* | $212.6 | $— | \* |
| Segment profit | $8.0 | $— | \* | $3.2 | $— | \* |
| Operating margin | 4.3% | —% |  | 1.5% | —% |  |

\*Calculation not meaningful.

The Acquisition was completed on May 31, 2025, so there are no comparative prior periods and results for the nine months ended September 2025 include four months of operations. The results for the three months ended September 2025 were impacted by acquisition and integration-related costs and the results for the nine months ended September 2025 reflect seasonality of the Helly Hansen business.

### Other

In addition, we report an "Other" category to reconcile the Company's segment revenues to total revenues and segment profit to income before income taxes. Other includes sales and licensing of the *Musto®, Chic®* and *Rock & Republic®* brands, as well as other company-owned brands and private label apparel, and the associated costs. Results of the *Musto®* brand have been included since the Helly Hansen acquisition on May 31, 2025. The businesses within the Other category, either individually or in the aggregate, do not meet the criteria to be considered reportable segments.

*(Dollars in millions)*

|  | Three Months Ended September 2025 | 2024 | Percent Change | Nine Months Ended September 2025 | 2024 | Percent Change |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Other revenues | $9.3 | $3.7 | 148.7% | $16.7 | $8.4 | 100.3% |
| (Loss) profit related to other revenues | $(1.6) | $0.2 | (950.3)% | $(2.8) | $(1.1) | 163.2% |
| Operating margin | (16.9)% | 4.9% |  | (16.9)% | (12.8)% |  |

33 Kontoor Brands, Inc. Q3 FY25 Form 10-Q

### Reconciliation of Segment Profit to Income Before Income Taxes

The costs below are necessary to reconcile segment profit to income before income taxes. Corporate and other expenses, including certain acquisition and integration-related costs and restructuring and transformation costs, as well as interest expense and interest income, are not controlled by segment management and therefore are excluded from the measurement of segment profit.

*(Dollars in millions)*

| Segment profit: | Three Months Ended September 2025 | 2024 | Percent Change | Nine Months Ended September 2025 | 2024 | Percent Change |
| --- | ---: | ---: | ---: | ---: | ---: | ---: |
| Wrangler | $116.4 | $97.8 | 19.1% | 311.4 | 260.8 | 19.4% |
| Lee | 16.7 | 23.4 | (28.4)% | 61.6 | 71.8 | (14.3)% |
| Helly Hansen | 8.0 | — | \* | 3.2 | — | \* |
| Reconciliation to income before income taxes: |  |  |  |  |  |  |
| Corporate and other expenses | (79.6) | (26.3) | 202.6% | (142.8) | (82.7) | 72.5% |
| Interest expense | (19.0) | (11.2) | 69.7% | (42.3) | (30.9) | 37.0% |
| Interest income | 0.3 | 3.0 | (88.2)% | 6.7 | 8.0 | (16.5)% |
| (Loss) profit related to other revenues | (1.6) | 0.2 | (950.3)% | (2.8) | (1.1) | 163.2% |
| **Income before income taxes** | **$41.3** | **$86.8** | **(52.4)%** | **$195.0** | **$225.9** | **(13.7)%** |

\*Calculation not meaningful.

#### Three Months Ended September 2025 Compared to the Three Months Ended September 2024

**Corporate and other expenses** increased $53.3 million, primarily due to restructuring and transformation costs related to the closure of a portion of our manufacturing facilities and acquisition and integration-related costs during the three months ended September 2025, as well as increases in incentive compensation expense and higher investments in information technology compared to the prior period.

**Interest expense** increased $7.8 million during the three months ended September 2025 compared to the three months ended September 2024, primarily due to higher debt outstanding to fund the Acquisition.

#### Nine Months Ended September 2025 Compared to the Nine Months Ended September 2024

**Corporate and other expenses** increased $60.0 million, primarily due to restructuring and transformation costs related to the closure of a portion of our manufacturing facilities and acquisition and integration-related costs during the nine months ended September 2025, and increases in business optimization charges and incentive compensation expense compared to the prior period, partially offset by gains related to the purchase price hedges for the Acquisition.

**Interest expense** increased $11.4 million during the nine months ended September 2025 compared to the nine months ended September 2024, primarily due to higher debt outstanding to fund the Acquisition.

### ANALYSIS OF FINANCIAL CONDITION

### Liquidity and Capital Resources

The Company's ability to fund our operating needs is dependent upon our ability to generate positive long-term cash flows from operations and maintain our debt financing on acceptable terms. The Company has historically generated strong positive cash flows from operations and continues to take proactive measures to manage working capital. We believe cash flows from operations will support our short-term liquidity needs as well as any future liquidity and capital requirements, in combination with available cash balances and borrowing capacity from our revolving credit facility.

### Credit Availability

At September 2025, the Company had availability of $19.6 million under its previously established international line of credit which is uncommitted and may be terminated at any time by either the Company or the financial institution. In addition, the Company had $17.5 million available at September 2025 under a committed international line of credit as a result of the Acquisition. There were no outstanding balances under these arrangements at September 2025.

Kontoor Brands, Inc. Q3 FY25 Form 10-Q 34

The Company was previously party to an amended and restated senior secured Credit Agreement dated November 18, 2021 (the "2021 Credit Agreement") that provided for (i) a five-year $400.0 million term loan A facility ("2021 Term Loan A”) and (ii) a five-year $500.0 million revolving credit facility with the lenders and agents party thereto.

On April 8, 2025, the Company completed a refinancing pursuant to which it amended and restated the 2021 Credit Agreement to provide for (i) a five-year $700.0 million term loan facility ("Term Loan A-1") consisting of a $340.0 million initial term loan ("Initial Term Loan") and a $360.0 million delayed draw term loan ("Delayed Draw Term Loan"), (ii) a three-year $300.0 million delayed draw term loan facility ("Term Loan A-2") and (iii) a five-year $500.0 million revolving credit facility (the "Revolving Credit Facility"), collectively referred to as the "Credit Facilities," with the lenders and agents party thereto. Upon closing of the Credit Agreement (the "2025 Credit Agreement"), the net proceeds from the Initial Term Loan were used to repay all of the $340.0 million principal amount outstanding under the 2021 Term Loan A. On May 30, 2025, the Delayed Draw Term Loan and Term Loan A-2 were fully drawn and used to fund the Acquisition, along with approximately $300 million of cash on hand.

Term Loan A-1 is scheduled to be repaid in quarterly installments of $4.4 million beginning in September 2026 which increases to quarterly installments of $8.8 million beginning in September 2027, with the remaining principal due at maturity. Term Loan A-2 is scheduled to be repaid in full at maturity. During the three and nine months ended September 2025, the Company made voluntary early repayments of $25.0 million and $50.0 million, respectively, of the principal outstanding amount on Term Loan A-2.

As of September 2025, the Company was in compliance with all applicable covenants under the 2025 Credit Agreement and expects to maintain compliance with the applicable covenants for at least one year from the issuance of these financial statements. If economic conditions significantly deteriorate for a prolonged period, or the Company experiences long-term challenges integrating and operating Helly Hansen, or meeting the resulting incremental debt service requirements, this could impact the Company's operating results and cash flows and thus our ability to maintain compliance with the applicable covenants. As a result, the Company could be required to seek new amendments to the 2025 Credit Agreement or secure other sources of liquidity, such as refinancing of existing borrowings, the issuance of debt or equity securities, or sales of assets. However, there can be no assurance that the Company would be able to obtain such additional financing on commercially reasonable terms or at all.

The Revolving Credit Facility may be used to borrow funds in both U.S. dollar and certain non-U.S. dollar currencies, and has a maximum borrowing capacity of $500.0 million with a $75.0 million letter of credit sublimit. There were no outstanding borrowings under the Revolving Credit Facility as of September 2025.

The following table presents outstanding borrowings and available borrowing capacity under the Revolving Credit Facility and our cash and cash equivalents balances as of September 2025:

*(In millions)*

|  | September 2025 |
| --- | ---: |
| Outstanding borrowings under the Revolving Credit Facility | $— |
| Available borrowing capacity under the Revolving Credit Facility (1) | $493.7 |
| Cash and cash equivalents | $82.4 |

(1) Available borrowing capacity under the Revolving Credit Facility is net of $6.3 million of outstanding standby letters of credit issued on behalf of the Company under this facility.

### Senior Notes

Additionally, the Company has outstanding $400.0 million of unsecured 4.125% senior notes due 2029.

Refer to Note 11 in the Company's 2024 Annual Report on Form 10-K and Note 8 to the Company's financial statements in this Form 10-Q for additional information regarding the Company's debt obligations.

### Other Liquidity Considerations

During the nine months ended September 2025, the Company did not repurchase any shares of Common Stock under its share repurchase program authorized by the Company's Board of Directors. Of the $300.0 million authorized for repurchase under the share repurchase program, $215.0 million remained available for repurchase as of September 2025.

During the nine months ended September 2025, the Company paid $86.6 million of dividends to its shareholders. On October 22, 2025, the Board of Directors declared a regular quarterly cash dividend of $0.53 per share of the Company's Common Stock. The cash dividend will be payable on December 18, 2025, to shareholders of record at the close of business on December 8, 2025.

The Company intends to continue to pay cash dividends in future periods. The declaration and amount of any future dividends will be dependent upon multiple factors including our financial condition, earnings, cash flows, capital requirements, covenants associated with our debt obligations, legal requirements, regulatory constraints, industry practice and any other factors or considerations that our Board of Directors deems relevant.

35 Kontoor Brands, Inc. Q3 FY25 Form 10-Q

We anticipate that we will have sufficient cash flows from operations, along with existing borrowing capacity, to support continued investments in our brands, infrastructure, talent and capabilities, dividend payments to shareholders, repayment of our debt obligations when due and repurchases of Common Stock. In addition, we anticipate that we would use current liquidity as well as access to capital markets to fund any additional strategic acquisition opportunities that may arise.

We currently expect capital expenditures to be approximately $25.0 million in 2025, primarily to support manufacturing, distribution, facility improvement, information technology and owned retail store investments.

The following table presents our cash flows during the periods:

*(In millions)*

| Cash provided (used) by: | Nine Months Ended September 2025 | 2024 |
| --- | ---: | ---: |
| **Operating activities** | $167.5 | $286.3 |
| **Investing activities** | $(889.9) | $(16.5) |
| **Financing activities** | $501.9 | $(210.8) |

### Operating Activities

During the nine months ended September 2025, cash provided by operating activities was $167.5 million as compared to $286.3 million in the prior year period. The decrease was primarily due to changes in working capital, including unfavorable changes in inventories and accounts receivable, partially offset by favorable changes in accounts payable and accrued and other current liabilities. Unfavorable changes in inventory were driven by increases in product costs and tariffs, higher inventory to support transitions from manufacturing facilities to sourced production and early receipts of inventory as a result of improved sourcing lead times. Unfavorable changes in accounts receivable were driven by seasonality of the business.

### Investing Activities

During the nine months ended September 2025, cash used by investing activities was $889.9 million as compared to $16.5 million in the prior year period, primarily due to cash used to fund the Acquisition, partially offset by proceeds from the settlement of foreign exchange contracts associated with the purchase price of the Acquisition in the current year period.

### Financing Activities

During the nine months ended September 2025, cash provided by financing activities was $501.9 million as compared to $210.8 million of cash used by financing activities in the prior year period. Cash provided by financing activities in the current year period was primarily related to our debt refinancing, including $1.0 billion of proceeds from the issuance of Term Loan A-1 and Term Loan A-2, partially offset by $345.0 million of repayments on the 2021 Term Loan A and $50.0 million in voluntary early repayments on Term Loan A-2, as compared to the prior year period which had no issuance of long-term debt and $40.0 million in repayments of the 2021 Term Loan A. Additionally, we did not repurchase Common Stock during the nine months ended September 2025, compared to $85.7 million of Common Stock repurchases during the nine months ended September 2024.

### Contractual Obligations and Other Commercial Commitments

The section entitled "Management's Discussion and Analysis of Financial Condition and Results of Operations - Contractual Obligations" included in the Company's 2024 Annual Report on Form 10-K provided a summary of our contractual obligations and commercial commitments at the end of 2024 that would require the use of funds. As of September 2025, there have been no material changes in the amounts disclosed in the 2024 Annual Report on Form 10-K, except as noted below:

- Commitments increased by $86.0 million, primarily related to Helly Hansen purchase commitments for inventory and marketing arrangements.

### Critical Accounting Policies and Estimates

We have chosen accounting policies that management believes are appropriate to accurately and fairly report our operating results and financial position in conformity with GAAP. We apply these accounting policies in a consistent manner. Significant accounting policies are summarized in Note 1 to the consolidated financial statements included in the 2024 Annual Report on Form 10-K.

The application of these accounting policies requires that we make estimates and assumptions about future events and apply judgments that affect the reported amounts of assets, liabilities, net revenues, expenses, contingent assets and liabilities and related disclosures. These estimates, assumptions and judgments are based on historical experience, current trends and other factors believed to be reasonable under the circumstances. Management evaluates these estimates and assumptions on an ongoing basis. Because our business cycle is relatively short (i.e., from the date that inventory is received until that inventory is sold and the trade accounts receivable is collected), actual results related to most estimates are known within a few months after any balance sheet

Kontoor Brands, Inc. Q3 FY25 Form 10-Q 36 date. Several of the estimates and assumptions we are required to make relate to future events and are therefore inherently uncertain, especially as it relates to events outside of our control. If actual results ultimately differ from previous estimates, the revisions are included in results of operations when the actual amounts become known. Refer to Note 1 to the Company's financial statements in this Form 10-Q for considerations related to the macroeconomic environment and other recent developments.

The accounting policies that involve the most significant estimates, assumptions and management judgments used in preparation of the financial statements, or are the most sensitive to change from outside factors, are discussed within "Management's Discussion and Analysis of Financial Condition and Results of Operations - Critical Accounting Policies and Estimates" in the 2024 Annual Report on Form 10-K. There have been no material changes in these policies disclosed in the 2024 Annual Report on Form 10-K, except as noted below:

- In the second quarter of 2025, the Company completed the Helly Hansen acquisition which required the application of purchase accounting. Refer to Note 9 to the Company's financial statements in this Form 10-Q for additional information on the fair value measurements applied.

### Recently Issued and Adopted Accounting Standards

Refer to Note 1 to the Company's financial statements in this Form 10-Q for additional information regarding recently issued and adopted accounting standards.

### Cautionary Statement on Forward-looking Statements

From time to time, the Company may make oral or written statements, including statements in this quarterly report, that constitute “forward-looking statements” within the meaning of the federal securities laws. These include statements concerning plans, objectives, projections and expectations relating to the Company's operations or economic performance and assumptions related thereto. Forward-looking statements are made based on management's expectations and beliefs concerning future events impacting the Company and therefore involve a number of risks and uncertainties. Forward-looking statements are not guarantees, and actual results could differ materially from those expressed or implied in the forward-looking statements. In addition, the forward-looking statements in this report are made as of the date of this filing, and the Company does not undertake, and expressly disclaims any duty, to update such statements, whether as a result of new information, new developments, or otherwise, except to the extent that disclosure may be required by law.

Potential risks and uncertainties that could cause the actual results of operations or financial condition of the Company to differ materially from those expressed or implied by forward-looking statements in this report include, but are not limited to: macroeconomic conditions, including elevated interest rates, moderating inflation, fluctuating foreign currency exchange rates, global supply chain issues and inconsistent consumer demand, continue to adversely impact global economic conditions and have had, and may continue to have, a negative impact on the Company's business, results of operations, financial condition and cash flows (including future uncertain impacts); the level of consumer demand for apparel; reliance on a small number of large customers; potential difficulty in integrating Helly Hansen and/or in achieving the expected growth, cost savings and/or synergies from the acquisition; supply chain and shipping disruptions, which could continue to result in shipping delays, an increase in transportation costs and increased product costs or lost sales; intense industry competition; the ability to accurately forecast demand for products; the Company's ability to gauge consumer preferences and product trends, and to respond to constantly changing markets; the Company's ability to maintain the images of its brands; changes to trade policy, including tariffs, reciprocal tariffs and import/export regulations; disruption and volatility in the global capital and credit markets and its impact on the Company's ability to obtain short-term or long-term financing on favorable terms; the Company maintaining satisfactory credit ratings; restrictions on the Company's business relating to its debt obligations; increasing pressure on margins; e-commerce operations through the Company's direct-to-consumer business; the financial difficulty experienced by the retail industry; possible goodwill and other asset impairment; the ability to implement the Company's business strategy; the stability of manufacturing facilities and foreign suppliers; fluctuations in wage rates and the price, availability and quality of raw materials and contracted products, including as a result of tariffs and reciprocal tariffs; the reliance on a limited number of suppliers for raw material sourcing and the ability to obtain raw materials on a timely basis or in sufficient quantity or quality; disruption to distribution systems; seasonality; unseasonal or severe weather conditions; potential challenges with the Company's implementation of Project Jeanius; the Company's and its vendors' ability to maintain the strength and security of information technology systems; the risk that facilities and systems and those of third-party service providers may be vulnerable to and unable to anticipate or detect data security breaches and data or financial loss or maintain operational performance; ability to properly collect, use, manage and secure consumer and employee data; legal, regulatory, political and economic risks; the impact of climate change and related legislative and regulatory responses; stakeholder response to sustainability issues, including those related to climate change; compliance with anti-bribery, anti-corruption and anti-money laundering laws by the Company and third-party suppliers and manufacturers; changes in tax laws and liabilities; the costs of compliance with or the violation of national, state and local laws and regulations for environmental, consumer protection, employment, privacy, safety and other matters; continuity of members of management; labor relations; the ability to protect trademarks and other intellectual property rights; the ability of the Company's licensees to generate expected sales and maintain the value of the Company's brands; volatility in the price and trading volume of the Company's common stock; anti-takeover provisions in the Company's organizational documents; and fluctuations in the amount and frequency of our share repurchases. Many of the foregoing risks and uncertainties will be exacerbated by any worsening of the global business and economic environment.

37 Kontoor Brands, Inc. Q3 FY25 Form 10-Q

More information on potential factors that could affect the Company's financial results are described in detail in the Company's 2024 Annual Report on Form 10-K and in other reports and statements that the Company files with the Securities and Exchange Commission ("SEC").

## Market risk

As filed, 138 characters.

There have been no material changes in the Company's market risk exposures set forth under Item 7A in our 2024 Annual Report on Form 10-K.

## Controls and procedures

As filed, 1,532 characters.

(a) *Disclosure Controls and Procedures*. As of the end of the period covered by this report, we carried out an evaluation, under the supervision and with the participation of our management, including our principal executive and principal financial officers, of the effectiveness of the design and operation of our disclosure controls and procedures (as such term is defined in Rule 13(a)-15(e) of the Securities Exchange Act of 1934 (the "Exchange Act")). Based on such evaluation, our principal executive and principal financial officers concluded that our disclosure controls and procedures were effective and operating to provide reasonable assurance that information required to be disclosed by us in the reports we file or submit under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the SEC, and to provide reasonable assurance that such information is accumulated and communicated to our management, including our principal executive and principal financial officers, as appropriate, to allow timely decisions regarding required disclosure.

(b) *Internal Control Over Financial Reporting.* There have been no changes in our internal control over financial reporting (as such term is defined in Rule 13a-15(f) under the Exchange Act) during the quarter ended September 27, 2025, that have materially affected, or are reasonably likely to materially affect, our internal control over financial reporting.

Kontoor Brands, Inc. Q3 FY25 Form 10-Q 38

## Risk factors

As filed, 281 characters.

Careful consideration of the risk factors set forth under Part I, Item 1A, “Risk Factors,” of our 2024 Annual Report on Form 10-K should be made. There have been no material changes to the risk factors from those disclosed in Part I, Item 1A of our 2024 Annual Report on Form 10-K.

Filed Nov 3, 2025.
Source: SEC EDGAR, the filing index for accession 0001760965-25-000103. Last ingested by Listed: Nov 6, 2026, 18:17 ET. No prices; not investment advice.